The gap between prime polypropylene and recycled material narrowed in April as prime prices fell and recycled held their own.
Prime HoPP, for instance, dropped from 62.5 cents per pound to 54 cents per pound on the U.S. Gulf from April 3 to April 28, while recycled HoPP (black injection grade pellets FOB U.S. East Coast) held at 42 cents per pound.
Propylene was tight in the fourth quarter of 2016 and first quarter of 2017, which drove the propylene contract price up sharply from December to March. But prime polypropylene followed propylene monomer prices lower in April as the propylene market corrected itself. U.S. April propylene contracts settled at 46 cents per pound for polymer grade and at 44.5 cents per pound for chemical grade, a decline of 6 cents per pound from March.
For a free trial to PCW’s Weekly Recycled Plastics Report, Weekly PVC & Pipe Report or Daily Report on prime resins, monomers and NGLs visit the PetroChem Wire website at petrochemwire.com. You can also contact Cindy Bryan at [email protected] or 713-385-1407.